Warning to FX… a story that made me cry? A real tale of leaving.

This story is for people who are about to start FX,for those with gambling dependence

for those who have exited the market and are wondering if this is really okay as it is

and for those who feel anxious about the future.

If you are doing well, please ignore this.

Actually, I have exited FX three times.

From the time I was an investor growing, how much capital I would lose

and how painful it would be, I wrote clearly for those who are about to start.

FX is often counted as 1000 units per 0.01 lot.

This varies by the account you use, so be careful about the terminology.

I traded in a securities account where 1000 currency units are called 0.01 lots.

Because it is 1000 units, if the price moves by 1 yen, you can earn 1000 yen.

Normally, it moves in a range,

repeating very mild up-and-down movements.

A 1 yen move is rare, right?

Earning several hundred yen for a day felt wasteful to me.

So I increased it tenfold to 0.1 lot.

That becomes 10,000 currency units.

If it moves 1 yen, you earn 10,000 yen.

But when nothing happens, the market often moves in a quiet fashion.

I thought I could earn about 1,000 yen even if the market didn’t move much.

If I watched the market closely,

if it went a little higher, I thought I could grab around 500 to 1000 yen.

I thought I could make that.

Then, if by luck it moved up,

I could take 2000 or 3000 yen.

I hadn’t set stop-losses.

I think I deposited about 100,000 yen at that time.

I figured I would manage somehow.

However, this 0.1 lot could be used to earn repeatedly

and eventually greed grew.

I went to the bank and

deposited more funds

I think about 1 million yen,

into the account.

Because I wanted to try 1 lot.

That 1 million yen I deposited then became a demon.

One morning, when I woke up,

as I had planned,the orders were filled, and I was earning.

But that made my senses numb

and I began wanting to trade 5 lots.

Waking up to days where I could earn 50,000 yen felt like a dream.

I could live on just this!

Because of that belief, I did not heed warnings written in books or on the Internet.

At this time I was trading USD/JPY.

Around here I exited the market.

There came a drawdown of more than 500,000 yen per 1 lot.

When I exited then, I got goosebumps, my face turned pale,

I couldn't even eat for about three days

and I couldn't tell my family the reason easily,

and I felt I could understand the feelings of someone who disappears.

After a while, when funds were available again, I thought

I would try another method,

expecting a 50万円 drawdown per 1 lot,

and started with roughly the same amount of funds again,

thinking it would be okay this time.

And I exited again.

Back then, I thought

if I do it at one-tenth of the price, I could wait psychologically

and manage somehow.

So this time I deposited 100,000 yen and started with 0.1 lot.

It was enjoyable to take positions,

and I quickly became hooked.

Then the market moved in the opposite direction of my speculation,

and my stop-loss order did not execute, it was not hit

and I exited due to a surge in the dollar.

Even though I set a stop-loss, it sometimes does not trigger...

When everyone exits at once,

there is no one to trade at that price,

so it doesn't hit,

especially at critical moments…?

In particular during rapid market changes,

stop-loss often does not execute,

so please do not believe that just setting stop-loss will keep you safe.

In FX, people often say you set a stop-loss,

try to time the entry,

do scalping,

and reduce losses to stabilize trading.

I tried many trading methods that circulated in the market.

And I learned techniques from various traders and tried many approaches.

But without capital you cannot wait in FX.

And that capital is not something ordinary people can access.

FX is conventional to use leverage,

and if you say this, people mock you, but

If you operate with 0.1 lot without using leverage

you would need capital like 1 to 2 million yen,

the same funds as in a cash account are actually necessary.

Even so, such capital can vanish in the currency market,

because the market can wipe it out.

Leverage is debt

and if you run out, you cannot wait and you are reset to zero, losing funds.

If it were cash, you could wait.

Now, due to geopolitical factors, there are frequent conflicts, oil,

and import-export issues,

and the president's statements can move the market in unpredictable ways.

Usually, a move of 0.5 to 1 yen is rare in the market,

but suddenly a few yen can move.

For a long time, the pound has been called a "killer currency," but

the dollar moves now are also enormous, and anything can happen.

From around 95 to 115 yen was a time of calm fluctuation,

but we are not in that era anymore.

Why do I say that without cash on hand you have no edge?

In places where traders are ranked,

many top performers can wait for nearly a year for the worst drawdown.

They use leverage sparingly for capital efficiency, and have substantial funds.

The illusion of capital efficiency

will someday destroy you.

Those who succeed are truly few.

Those who succeed

can wait for the right entry timing

do not hold too many currencies beyond their means.

Stop-loss orders may not execute.

I have stated this again because it is important.

Another thing I want to add.

In the book considered the Bible of the world's rich,

'The Richest Man in Babylon' and its laws of prosperity,

the goddess of victory smiles on those who work.

As a definition of work

what happens to those who earn a living from markets or gambling?

Can traders or those who live off gambling be considered to have work?

The answer was

'The markets or the gambling venues provide the place and operate it as their business,

and the players are their customers'

The book says.

It is a very good book, and there is a manga adaptation as well,

so please read it if you get the chance.

When I recall exiting the market

Ah, money from back then, come back to me~ (T . T)and

I still feel that way...

Money is the reward of labor,

so you must protect and carefully consider your investments...

I hope that even one more person will

not get hurt...

I hope many of you will gain profits.

Thank you for reading.